Bitcoin, XRP jump ahead of Fed’s first 2026 interest rate decision
Bitcoin and XRP are moving higher ahead of the Federal Reserve’s first policy call of 2026.
It’s one of those days where macro traders are staring at the same things. The Fed decision on interest rates, and Chair Jerome Powell’s statement during the press conference.
Crypto just happens to be the loudest “risk-on” gauge on the screen when the market is feeling jumpy. And while the base case is boring - no rate cut - the setup isn’t.
The Fed decision lands in an economy that still looks sturdy, even with rate-cut expectations getting pushed out. Policymakers are set to announce their decision at 2:00 p.m. ET on Jan. 28. Markets will then turn immediately to Powell’s press conference 30 minutes later
Recent data showed the U.S. unemployment rate fell to 4.4% in December, while economists and strategists point to strong consumer spending that’s kept growth from rolling over.
That backdrop has kept risk assets buoyant.
U.S. equities opened firmly higher, with the S&P 500 opening around the 7,000 level, as strength in chip stocks and fresh “Magnificent Seven” earnings helped fuel optimism ahead of the Fed decision.